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President John Dramani Mahama did not mince his words during the State of the Nation Address (SONA) as he unveiled the dire situation facing Ghana’s energy sector.
The outgone New Patriotic Party (NPP) government, he revealed, had left a costly legacy of mismanagement and debt, amounting to staggering figures.
In a shocking revelation, President Mahama disclosed that the Akufo-Addo administration had collected a staggering Ghc45 billion in Energy Sector Levies (ESLA) over the past eight years.
However, despite this massive sum, the NPP government departed in December 2024, leaving behind a crippling debt of Ghc70 billion in the energy sector.
Adding insult to injury, it was disclosed that a crucial maintenance project by the West African Gas Pipeline Company (WAPCo) was deliberately postponed from 2024 to 2025, allegedly at the behest of the NPP government to avoid disruptions ahead of the 2024 elections.
This shortsighted decision, coupled with a lack of contingency planning, paved the way for the current electricity crisis plaguing the nation. Faced with this grim situation, President Mahama and his administration have scrambled to secure emergency fuel supplies to keep the lights on amid the chaos.
The President assured Parliament that efforts are underway to address the crisis, with a target for the completion of the critical pigging exercise in the coming weeks to boost gas flows and improve power generation.
Moreover, bold reforms are on the horizon, with the Minister for Energy and Green Transitions tasked with implementing sweeping changes.
These include streamlining revenue collection processes, enforcing fiscal discipline through the Cash Waterfall Mechanism (CWM), and cutting down on wasteful expenditures.
Highlighting the administration’s green agenda, President Mahama outlined plans to ramp up renewable energy initiatives, setting up a Renewable Energy and Green Transition Fund to accelerate Ghana’s shift towards sustainable energy solutions.
From solar street lighting to electric vehicle charging stations, these measures aim to reduce reliance on the grid and propel Ghana to the forefront of Africa’s green energy revolution.